Nstein announces the closing of $4.25 million financing

2003-11-28

Montreal - Friday, November 28, 2003 - Nstein Technologies Inc. (TSX-V:EIN), the leader in software solutions for managing and retrieving unstructured information, announced today the closing of a previously announced $2 million private placement of common shares with the Solidarity Fund QFL and a $2.25 million secured loan facility with Bank of Montreal. Concurrently with these transactions, the Company entered into an agreement with La Financière du Québec providing for a partial guarantee of the bank loan. In consideration for the loan guarantee, Nstein granted to La Financière du Québec 2,649,429 equity warrants, each warrant entitling La Financière du Québec to acquire one common share of Nstein at a price of $0.13 per share. The equity warrants are exercisable for a period of five (5) years and may be exercised in whole or in part, at any time, before their expiry date. The bank loan and loan guarantee provide for an initial disbursement of $1 million, with subsequent disbursements up to the total amount of the loan to be made subject to certain conditions in favour of the lender and guarantor, including achievement by Nstein of certain financial milestones relating to its income and profits for the fiscal year ending December 31, 2004 and for each of the three month periods ending March 31, 2004 and June 30, 2004.

Following these transactions, Nstein will immediately have available $ 3 million that will be used for commercialization of the Company's products.

"As current investments in IT companies are rare, we can say that this financing is a clear signal: our business plan is solid and it stands out. The investment from Solidarity Fund QFL will lend added confidence to our customers and prospects in connection with the commercial activities of the Company" said Mr. Mario Girard, Nstein's Chairman of the Board and Chief Executive Officer.

As a result of these transactions, the Solidarity Fund QFL now owns 48,571,429 common shares of Nstein, representing 37% of the total 132.8 million of Nstein's issued and outstanding common shares, or 38% upon exercise of the 2,000,000 equity warrants granted to the Fund in connection with the private placement. In addition, upon exercise in full of the equity warrants granted to it in connection with the loan guarantee, La Financière du Québec will be entitled to acquire 2,649,429 of Nstein's common shares, representing 2% of Nstein's issued and outstanding common shares. In connection with the transactions, approximately 6.7 million equity warrants previously issued to the Fund have been cancelled. The common shares and warrants issued in connection with these transactions are subject to a 12 month hold period and certain restrictions on resale.

About Nstein Technologies

Nstein Technologies develops and markets content management indexing software and solutions that solve mission-critical business problems. Nstein maximizes the value of its customer's information assets within the e-publishing, financial, legal, and homeland security services. Nstein's organization, navigation and retrieval software creates immediate and substantial ROI via significant new revenue streams, productivity and efficiency gains. Nstein is headquartered in Montreal, Canada with sales offices in Boston, Philadelphia, San Francisco, Washington DC and New York. Nstein is a public company listed on the TSX Canadian Venture Exchange (EIN). For further information please visit www.nstein.com.

About Solidarity Fund QFL

The Solidarity Fund QFL, with net assets in excess of $4.6 billion in 2003, is an investment fund that makes use of Quebecers' savings, particularly through its RRSP, to help create and maintain jobs in companies and to contribute to the economic development of Québec. With over 550,000 shareholders, the Fund has helped create, maintain and protect over 90,000 jobs, either on its own or with other financial partners. (www.fondsftq.com)

• The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
• Any statement that appears prospective shall not be interpreted as such.

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